Monolithic Power Systems Reports Strong Q3 Earnings Growth

The latest investor letter from Carillon Tower Advisers, released on November 24, 2025, highlights the robust performance of Monolithic Power Systems, Inc. (NASDAQ: MPWR) in the third quarter of 2025. The semiconductor company’s earnings growth was driven by diverse end markets and a promising outlook in artificial intelligence (AI) data center applications.

The equity markets continued their upward trend during the third quarter, buoyed by enthusiasm surrounding AI technologies and a limited impact from inflationary pressures. The Russell Midcap Growth Index rose by 2.78%, although it lagged behind the Russell Midcap® Value Index, which increased by 6.16%. Amid this backdrop, mid-cap stocks maintained positive momentum, with Monolithic Power Systems emerging as a notable performer.

In its report, Carillon Eagle Mid Cap Growth Fund noted that Monolithic Power Systems delivered record revenues of $737.2 million for the third quarter, reflecting a substantial 10.9% increase compared to the previous quarter and an impressive 18.9% year-over-year rise. Despite a recent one-month decline in share value of 17.80%, the company has seen a remarkable 56.09% increase over the past year, closing at $892.97 per share with a market capitalization of $42.78 billion.

Carillon Eagle Mid Cap Growth Fund expressed optimism regarding Monolithic Power Systems, stating, “The company has shown solid earnings results driven by diversified end markets, while the outlook for market share in AI data center applications has improved during the quarter.” Despite this positive assessment, Monolithic Power Systems was not among the 30 Most Popular Stocks Among Hedge Funds, with 41 hedge fund portfolios holding the stock as of the end of the second quarter, down from 47 in the prior quarter.

Investment sentiment towards Monolithic Power Systems appears cautious yet optimistic. While acknowledging the inherent risks, the fund suggests that certain AI stocks may offer greater potential for higher returns within a shorter timeframe.

For investors seeking opportunities in the AI sector, the fund encourages exploration of alternative investments that may yield significant returns. In a related article, a list of profitable semiconductor stocks, including Monolithic Power Systems, was discussed, indicating the company’s role in the broader market.

As the semiconductor industry continues to evolve, Monolithic Power Systems remains a key player, contributing meaningfully to the performance of investment strategies like the ClearBridge Mid Cap Growth Strategy in Q3 2025. For further insights, investors can refer to the hedge fund investor letters Q3 2025 page for additional perspectives from leading investors.